Sec. 3103. Expenditures for repairs in connection with casualty losses

198 words·~1 min read·/bill/113/hr/1/ih/section-3103

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Section 165, as amended by the preceding provisions of this Act, is amended by inserting after subsection

(g)the following new subsection: If a deduction is allowable under this section for any casualty loss with respect to any property, any expenditure made for any repair of damage to such property in connection with such casualty loss shall be treated as a permanent improvement made to increase the value of such property for purposes of section 263(a)(1). If the taxpayer elects the application of this paragraph with respect to any property with respect to which there is a casualty loss, no deduction shall be allowable under this section for the casualty loss with respect to such property and paragraph

(1)shall not apply to expenditures made for repair of damage to such property in connection with such casualty loss. Any election under this paragraph shall be made not later than the due date for the return of tax (including extensions) for the taxable year in which the casualty loss occurs and, once made, may be revoked only with the consent of the Secretary. . The amendment made by this section shall apply to losses sustained after December 31, 2014.